How a Payroll Provider Can Help You Maintain Compliance

By Beth Kempton,
November 21, 2017
Keeping up with constantly changing state and federal compliance regulations can be a never-ending cycle, and employers can face steep fines or lawsuits for common human error mistakes. But automating your HR processes enables you to stay compliant and save time that would have otherwise been spent manually tracking each compliance update. Rather than using a standalone payroll solution, an integrated payroll and talent management provider comes equipped with all the tools and reports needed to maintain compliance. Below, we’ve outlined several compliance regulations the right payroll provider can help you track.

Payroll & Tax Compliance

Automated taxes and reporting take the tax compliance burden off your plate. An integrated payroll and talent management solution ensures your business is fully compliant with tax regulations, including electronic IRS filing and pay withdrawals, quarterly online tax statements and W2 preview, and new hire reporting.

Affordable Care Act (ACA) Compliance

The ACA employer mandate requires all businesses with 50 or more full-time equivalent employees (FTE) to provide health insurance to at least 95% of their full-time employees and dependents up to age 26, or pay a fee. Due to the various complexities of the ACA, it can be easy for employers to make mistakes and fail to comply. By enlisting the right payroll provider, you can have resources at the tips of your fingers to stay up-to-date with ACA compliance. Your payroll provider can also help you get a full picture of health insurance eligibility across all your employees and ensure you have all necessary reporting to prove you’re maintaining compliance.

Consolidated Omnibus Budget Reconciliation Act (COBRA) Compliance

COBRA is a federal law that outlines how employees and their family members can opt for continued health care coverage under their employers for a limited period of time after coverage is lost for a number of reasons – including reduction in hours worked, voluntary or involuntary job loss, divorce, death, or other life events. Employers with group health plans and 20 employees or more are required to offer this temporary extension of health coverage. And employers who meet this criteria can face fines for inadequate record keeping, failing to notify employees of coverage in a timely manner and other simple mistakes. An integrated payroll and talent management provider can manage COBRA compliance for you, minimizing the risk of common mistakes and freeing up time for your HR team.

Equal Employment Opportunity Commission (EEOC) Compliance

The EEOC investigates workplace discrimination complaints based on an individual’s race, children, national origin, religion, sex, age, disability, gender identity, genetic information, and retaliation for reporting, participating in, and/or opposing a discriminatory practice. Rather than spending a significant amount of time – and risking mistakes – manually tracking EEOC compliance, partering with an integrated payroll and talent management provider provides you all the tools and tracking resources you need to maintain compliance.

Fair Labor Standards Act (FLSA) Compliance

FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards for full-time and part-time workers in the U.S. Payroll and talent management technology offers reporting and tracking to stay compliant with FLSA. Minimum wage and overtime pay can get particularly tricky for dealerships when it comes to automotive technicians and flag time pay – and other businesses with atypical pay plans. The Department of Labor mandates each employee must be paid at least minimum wage, so if a dealership service department has a slow week, the dealership would need to pay employees a “minimum wage makeup” to ensure you stay compliant with labor laws.

E-Verify Compliance

Recent regulations by the Departments of Justice, Labor and Homeland Security have made employment employment authorization measures much stricter, with fines for certain I-9 violations increasing by as much as 96 percent. E-Verify automation and integration through your payroll provider can ensure all your new hires have employment verification, so you can avoid severe fines and other penalties. E-Verify guarantees complete accuracy and compliance, as opposed to having new employees fill out paper forms to verify their identities. It also saves your business time, by requiring employees to fill out the forms on their own time before their first day, rather than spending time on the job filling out paperwork. With 2018 fast approaching, now is a better time than ever to ensure you have everything you need to maintain compliance in the coming year. For more information on how your payroll provider can help you maintain compliance – and other benefits of an integrated payroll and talent management system, download our Payroll Buyers Guide.

About the Author

Beth is the content strategist on Hireology’s marketing team, responsible for creating compelling blog posts, eBooks, marketing materials and other content. Her background includes five years of experience at a B2B digital marketing agency, where she crafted content for a variety of clients, including several in the HR technology space. Before beginning her career, Beth attended Loyola University Chicago, where she studied advertising and public relations.

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